Stock market analyst Hitendra Vasudeo of stockmechanics.com have suggested investors to ‘sell’ National Thermal Power Corporation (NTPC)  stock as there are full chances of a downward trend in this stock.

According to Mr. Vasudeo, investors can sell the stock around Rs 194-Rs 197.70 with a strict stop loss of Rs 201 to achieve a target that lies between Rs 187.30-Rs 176.90.

He also feels that NTPC stock would remain under high pressure due to existing market condition. The stock also remained weak on Monday (June 22).

The stock of the company, (on June 22), ended the day at Rs 191, as against its last closure of Rs 198.10 on the Bombay Stock Exchange (BSE) on Friday. The total number of shares traded on BSE stood at 2,416,695 on the BSE.

Current EPS & P/E ratio stood at 9.95 and 19.20 respectively. The share price has seen a 52-week high of Rs 233 and a low of Rs 113 on BSE.

Mr. Vasudeo also suggested that if the stock fell below Rs 173, it may see more weakness. So the investors must sell NTPC stock in today’s session. After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

NTPC, on June 22, declared that corresponding to the business partnership and stockholders contract accomplished between NTPC, Government of Kerala and Transformers and Electricals Kerala (TELK), NTPC has bought 44.6% of presently paid-up capital of TELK on June 19, 2009 from Government of Kerala at a total value of Rs 313.4 million, subject to final price to be based on the valuation of the assets of TELK as on March 31, 2009.

The power ministry, on June 15, asked NTPC to enter into the gas purchase agreement with RIL for projects other than amplifying the Kawas and Gandhar divisions, on which a legal argument is on with the private company.

NTPC, on June 13, is expected to purchase Jharkhand State Electricity Board`s (JSEB) Patratu Thermal Power Station (PTPS).

The plan is to establish 5-6 super-critical thermal divisions at the site, as the station has massive zones of vacant land.